The US Department of Justice yesterday wrote to the US Court of Appeals informing of the Malaysian government's legal ownership of the superyacht Equanimity.

This was hours after a default judgment obtained by 1MDB at the Kuala Lumpur High Court.

"According to press reports issued today, a Malaysian court just issued a default judgment against the M/Y Equanimity, which is the in rem defendant at issue in this appeal.

"According to this default judgment, the Equanimity is now property of the Malaysian government.

"Thus the Malaysian government now possesses both physical custody of the Equanimity and legal ownership of the Equanimity by operation of Malaysian law," read the letter sighted by Malaysiakini.

DOJ had previously applied to the US court to seize the Equanimity on grounds that it was acquired by businessperson Low Taek Jho using misappropriated funds from 1MDB that was laundered through the US financial system.

The US Federal Bureau of Investigation (FBI), in cooperation with Indonesian authorities, had in February seized the superyacht off the coast of Bali.

However, the DOJ decided to stay the seizure action after Indonesia decided to hand over the superyacht to Malaysia.

Had the DOJ proceeded, the department would have nevertheless returned the proceeds from the seizure to Malaysia but this would be subjected to substantial fees.

"The new default judgment granting Malaysia ownership of the Equanimity confirms that this appeal is not ripe for decision," the DOJ said in its letter to the US Court of Appeal.

Troubled sovereign wealth fund 1MDB had laid claim to the Equanimity on grounds that the superyacht was acquired using funds stolen from the company.

The Kuala Lumpur High Court granted a default judgment after no one came forward to challenge the claim.

Low, better known as Jho Low, used US$250 million (RM1.04 billion) of allegedly misappropriated from 1MDB to pay for the superyacht.